Halliburton seen staying in range
Chris McKhann | firstname.lastname@example.org
optionMONSTER systems detected the sale of 5,000 April 45 puts for $2.95. This volume compares with previous open interest of just 4 contracts at that strike, so this is clearly a new opening position.
A little more than a minute later, a block of 175,000 shares was sold for $48.0286. Combined with the options, that creates a delta-neutral play that is looking for lower volatility. This means that the trader is counting on HAL to stay range-bound and/or for actual volatility to be less than that implied by the options. (See our Education section)
HAL is down 0.72 percent to $48.09, a day after hitting its highest levels in two years. Shares bounced off support at $40 in late June.